TORONTO, May 16 /CNW/ - Star Navigation Systems Group Ltd. (TSX-V: SNA) ("Star" or the "Company") is pleased to announce that, subject to TSX-V acceptance, Star has completed a non-brokered private placement for gross proceeds totaling$1,261,286 representing 7,883,038 units at $0.16 per unit. Each unit consists of one Common Share of the Corporation and one-half of one common share purchase warrant. One full warrant entitles the holder to purchase one additional common share of the Corporation at$0.50 per share during the one year period from the date of issue. Proceeds of the placement will be used for marketing and general working capital purposes.

About Star Navigation: Star Navigation Systems Group Ltd. (www.star-navigation.com) owns the exclusive worldwide license to its proprietary, patented In-flight Safety Monitoring System, the first system in the world to feature in-flight data-analysis, monitoring and diagnostics with a real-time connection between aircraft and ground. Its real-time capability of tracking performance-trends and predicting incident-occurrence enhances aviation safety and improves fleet management while reducing costs for the operator.

Certain statements contained in this News Release constitute forward-looking statements. When used in this document, the words "may", "would", "could", "will" and similar expressions, as they relate to Star or its management are intended to identify forward-looking statements. Such statements reflect Star's current views with respect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause Star's actual performance or achievements to vary from those described herein. Should one or more of these factors or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Star does not assume any obligation to update these forward-looking statements.

The TSX Venture Exchange has not reviewed and does not accept

responsibility for the adequacy or accuracy of the content of this news

release.

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For further information: Viraf Kapadia, CEO, at (416) 252-2889 or at www.star-navigation.com